Twelve methods of money laundering
| Published date | 02 May 2017 |
| Date | 02 May 2017 |
| DOI | https://doi.org/10.1108/JMLC-05-2016-0018 |
| Pages | 130-137 |
| Author | Fabian Maximilian Johannes Teichmann |
| Subject Matter | Accounting & Finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
Twelve methods of
money laundering
Fabian Maximilian Johannes Teichmann
Teichmann International AG, St. Gallen, Switzerland
Abstract
Purpose –This paper aims to discuss how feasible it is for intelligent criminals to circumvent existing
anti-money laundering mechanisms.
Design/methodology/approach –Based upon ten informal interviews with money launderers and their
advisers; 18 formal, semi-standardized expert interviews with selected anti-money laundering specialists; and
a quantitative survey of 181 compliance ofcers, 12 effective methods to launder money have been developed.
Findings –It has been found that gold, jewellery, raw diamonds, antiquities, art, real estate projects,
consulting rms, mergers and acquisitions, banks in Dubai, deposit boxes, private cash deals and currency
exchange ofces continue to be extraordinarily suitable tools for money laundering.
Originality/value –The identication of gaps in anti-money laundering mechanisms is meant to provide
both compliance ofcers and legislators with valuable insights. While the existing literature focuses on
estimating the volume of money laundered in certain geographical areas and on the improvement of
anti-money laundering mechanisms, this paper describes how money launderers proceed to avoid getting
caught.
Keywords Money laundering, Panama papers
Paper type Research paper
Introduction
The recent publication of the so-called “Panama Papers” has once again prompted politicians
all over the world to advocate for stricter anti-money laundering laws. Stricter laws are
commonly perceived to be an effective way to combat money laundering. This study
illustrates the ineffectiveness of current anti-money laundering mechanisms by discussing
12 very secure methods of laundering money in today’s world.
While the overwhelming majority of the existing literature focuses on anti-money
laundering mechanisms and attempts to estimate the volume of money being laundered in
certain areas of the world, it is the purpose of this study to show how intelligent money
launderers must proceed to minimize their risk of being caught. This study is meant to
provide both legislators and compliance experts with an improved understanding of the
mechanisms by which money is laundered. It is the author’s belief that a profound
understanding of a phenomenon must be developed before it can be successfully combatted.
Denition of money laundering
For the purpose of this study, the author uses the denition of money laundering contained
in article 305bis of the Swiss Criminal Code (2015). Money laundering is dened in that
provision as “any act that is aimed at frustrating the identication of the origin, the tracing
or the forfeiture of assets which are known or assumed to originate from a felony”. While it
is acknowledged that there are many other denitions which could be used, the author
believes that the denition contained in the Swiss Criminal Code includes all of the elements
No external research funding has been received for this article.
The current issue and full text archive of this journal is available on Emerald Insight at:
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JMLC
20,2
130
Journalof Money Laundering
Control
Vol.20 No. 2, 2017
pp.130-137
©Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-05-2016-0018
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